The new hotel will have 180 bedrooms, one of which will be a penthouse, banqueting hall and conference facilities, including the historic Grosvenor Suite, while its bar, restaurant, spa and roof-top infinity pool - a city first - will be open to non-guests as well.

It is due to open in early 2019.

David Taylor, chief operating officer of hotel company Principal

Mr Taylor added: "What we're looking to do is create great hotels which are local at heart as the majority are developed in iconic buildings.

"We were looking at what was out there in Birmingham when we were introduced to Hortons' Estate.

"We're not after 'cookie cutter' buildings so The Grand had everything we were looking for when identifying a new hotel.

"Given the huge amount of regeneration taking place in Birmingham, it's always been a place we were looking at.

"This now allows us to work with Hortons' Estate to deliver what they want the property to be. We are really excited."

Mr Taylor said he expected "hundreds of jobs" to be created by the new venture and over the coming months Principal would work on the details of its restaurant and bar offer and whether to run them in house or bring in external operators.

Principal is part of the wider Principal Hotel Company, which also owns the De Vere brand, and has hotels in Manchester and London among others.

A series of new openings is planned over the coming year in a £250 million investment programme.